Kidney failure
At the centre of this current scandal is the Sanlu Group, a company based in the city of Shijiazhuang in Hebei province.
It has been selling milk powder tainted with the toxic chemical melamine, used in industry to make such things as plastics.
This chemical makes the milk powder appear to contain more protein than is actually the case.
So far, three children have died and more than 6,000 have been taken ill after drinking the powdered milk. Nearly 160 have experienced acute kidney failure.
All the children who became seriously ill drank milk made with powder produced by Sanlu, according to Chinese health minister Chen Zhu.
If there is a problem with the milk powder then there is likely to be a problem with fresh milk too 
Wang Wenli, mother
Anger over China milk scandal
But the scandal is not limited to just one company.
In a development that will surely worry the government, inspectors have found melamine in milk powder produced by 22 companies - one out of every five suppliers.
China's laws do not seem to be the main problem, according to a senior employee at a foreign firm that produces baby products in China.
"There are laws and the laws are very strict. When we want to launch a product, there are so many things we have to do," said the employee, who did not want to be identified.
Chinese central government officials often complain that these good laws are not heeded, a claim backed up by the industry insider.
"There is a lot of corruption, and Chinese companies can often find ways to carry on producing," she said.
In order to avoid the problems now facing Sanlu, this foreign firm sends its own inspectors to check products bought from Chinese suppliers.
Bitter taste over China baby milk
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